Clarifies that certain types of financing agreements are considered "project agreements" for the purpose of issuing special purpose revenue bonds for health care facilities. Authorizes $30,000,000 in SPRBs for Hawaii Pacific Health.

A BILL FOR AN ACT

SECTION 1. Section 39A-31, Hawaii Revised Statutes, is amended by amending the definition of "project agreement" to read as follows:

""Project agreement" means any agreement entered into under this part by the department with a project party providing for the issuance of special purpose revenue bonds to finance facilities of a project party or for a project party or to loan the proceeds of such bonds to assist not-for-profit corporations that provide health care facilities to the general public, including without limitation any loan agreement[.], lease, sublease, conditional sale agreement, or other similar financing contract or agreement, or any combination thereof, entered into by the department with a project party and, where necessary or appropriate, with a lender, lessor, or other third party."

SECTION 2. The legislature finds and declares that the issuance of special purpose revenue bonds under this Act is in the public interest and for the public health, safety, and general welfare.

SECTION 3. Pursuant to part II, chapter 39A, Hawaii Revised Statutes, the department of budget and finance, with the approval of the governor, is authorized to issue special purpose revenue bonds in a total amount not to exceed $30,000,000, in one or more series, for the purpose of assisting Hawaii Pacific Health, a Hawaii corporation, the obligated group in which Hawaii Pacific Health is a member, one or more of its not-for-profit affiliates, or any combination thereof, in financing, refinancing, reimbursing, or any combination thereof, costs related to the acquisition or construction of health care facilities (including, without limitation, costs related to the acquisition or construction of health care facilities and costs related to the acquisition and installation of information technology, equipment, software and other related projects for Hawaii Pacific Health, any one or more of its not—for-profit affiliates, or both). The legislature hereby finds and determines that the activities and facilities of Hawaii Pacific Health and its affiliates constitute a project as defined in part II, chapter 39A, Hawaii Revised Statutes, and the financing thereof is assistance to a not-for-profit corporation that provides health care facilities to the general public.

SECTION 4. The special purpose revenue bonds and the refunding special purpose revenue bonds issued under this Act shall be issued pursuant to part II, chapter 39A, Hawaii Revised Statutes, relating to the power to issue special purpose revenue bonds to assist not—for-profit corporations that provide health care facilities to the general public.

SECTION 5. The department of budget and finance is authorized, from time to time, including times subsequent to June 30, 2010, to issue special purpose revenue bonds in whatever principal amounts the department shall determine to be necessary to refund the special purpose revenue bonds authorized in section 3 and to refund special purpose revenue bonds authorized in this section, regardless of whether the outstanding special purpose revenue bonds or refunding special purpose revenue bonds have matured or are the subject of redemption or whether the refunding special purpose revenue bonds shall be bonds for the multi-project programs described in section 3. In making this determination, the department shall comply with federal law relating to the exemption from federal income taxation of the interest on bonds of the nature authorized by this section.

SECTION 6. The authorization to issue special purpose revenue bonds under this Act shall lapse on June 30, 2010.

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 8. This Act shall take effect upon its approval.